august 2017 the official publication … · me and success for my clients and business partners.”...

THE OFFICIAL PUBLICATION OF THE INLAND VALLEYS ASSOCIATION OF REALTORS®

AUGUST 2017WWW.IVAOR.COM

As Texas Faces Flooding Catastrophe, REALTORS® Push Flood Insurance Program

to Help Future Victims RebuildFOR MORE INFORMATION GO TO PAGE 4

Table of ContentsAUGUST 2017

RIVERSIDE OFFICE:3690 Elizabeth StreetRiverside, CA 92506

RANCHO CUCAMONGA OFFICE:10574 Acacia St., STE D-7

Rancho Cucamonga, CA 91730

www.ivaor.com

2017 IVAR BOARD OF DIRECTORSFrank Licea – President

Joe Cusumano – President-Elect

Donna O’Donnell – Treasurer

Scott Gieser – Immediate Past-President

Jesse Armendarez – Director

Kama Burton – Director

Vicki Carpenter – Director

Yvonne Leonard – Director

Lance Martin – Director

Ed Neighbors – Director

John Schulte – Director

Mike Stoffel – Director

Jesse Streeter – Director

IVAR STAFFMark Dowling – CEO

Paul Herrera – Government Affairs Director

Griselda Cena – Office Manager

Lupe Lopez – Accounting Assistant

Jean Wiltz – Education Coordinator

Linda Vansant – MLS

Alejandra Esquivel – MLS Assistant

Deanna McWilliams – Member Services

Melinda Medina – Member Services

Priscilla Bugayong – Member Services

Van Romine – IT/Operations

ADVERTISINGCall Toll-free: (800) 628-6983

for advertising rates and reservations.Foley Publication, Inc.

www.foleypub.com

ADVERTISERSFinance of America Mortgage. ........................................................... 3

COLUMNS4 President’s Message - As Texas Faces

Flooding Catastrophe, REALTORS®Push Flood Insurance Program toHelp Future Victims Rebuild

6-7 Government Affairs Update

8 Technology, Inventory andCompetition Among Firms’ TopChallenges: Realtors® Survey

9 Receive Weekly IVAR News andUpdates via Text Messages

10-16 Regional Housing Market Report

17 Realtors® Report Finds 11 PercentIncrease in Commercial MemberIncome, 19 Percent Increase in SalesTransaction Volume

http://www.ivaor.com

http://www.foleypub.com

There are so many reasons why Finance of America Mortgage may be the solution to your financing needs. Above all, we believe that our unique ability to fit a variety of client needs is the key to our success. Not only are our clients vital to our success, so are our employees and referral partners!

“Finance of America Mortgage is a great support team. As an Army Veteran and retired Deputy Sheriff, I have become familiar with working in a team environment so when I first checked out Finance of America, I quickly identified the teamwork mentality and support that exists here. For me, this was all I needed to see to choose Finance of America Mortgage. This has resulted in better performance for me and success for my clients and business partners.”

—Ed Avila, Mortgage Advisor | NMLS-1367993

MORE REASONS TO CHOOSE FINANCE OF AMERICA MORTGAGE:• 95% LTV for Jumbo Loans in the Inland Empire• FHA, VA and Conventional with fewer lender requirements• Marketing strategies for our business partners and employees

WHY WE STAND OUT

CONTACT ME TODAY!Brett ReichelBranch Manager | Mortgage AdvisorNMLS-210215

c: (909) 657-5101o: (503) 784-0482

[email protected]/breichel

This is not a commitment to lend. Prices and guidelines are subject to change without notice. Some products may not be available in all states. Subject to review of credit and/or collateral; not all applicants will qualify for financing. It is important to make an informed decision when selecting and using a loan product; make sure to compare loan types when making a financing decision. ©2016 Finance of America Mortgage LLC is licensed nationwide | | NMLS ID # 1071 (www.nmlsconsumeraccess.org) | AZ Mortgage Banker License #0910184 Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act | Georgia Residential Mortgage Licensee | Illinois Residential Mortgage Licensee Kansas Licensed Mortgage Company | Licensed by the N.J. Department of Banking and Insurance | Licensed Mortgage Banker -- NYS Banking Department | Rhode Island Licensed Lender

mailto:[email protected]

http://www.nmlsconsumeraccess.org

www.financeofamerica.com/breichel

As Texas Faces Flooding Catastrophe, REALTORS® Push Flood Insurance Program to Help Future Victims Rebuild

INLAND VALLEYS REALTOR® AUGUST 20174

FRANK LICEA,2017 IVAR PRESIDENT

PRESIDENT’S MESSAGE

In the past few days, Americans have started to see the devastation brought Hurricane Harvey to a huge swath of southeast Texas. Leaders of the disaster response effort have said that the storm has turned the region into an inland lake. The rain continues to fall and the waters continue to rise – and may do so through Labor Day.

Today we keep the people of Texas in our prayers and look for ways to help. I urge all members who are able to help, to support the REALTORS® Relief Foundation efforts to support Texas. You can make a donation right online at https://www.nar.realtor/programs/realtors-relief-foundation/donate. Every penny of contributions to the relief fund are used directly on relief. This relief fund has helped thousands of families in prior disasters, including prior storms in New Orleans and the New Jersey area.

Soon, hopefully, the waters will recede and further reveal a heartbreaking amount of devastation and need. That’s when entire neighborhoods will need to find the resources to rebuild. Fortunately for many, the National Flood Insurance Program will help restore and rebuild family homes rendered uninhabitable right now.

Hopefully, members have seen the National Call for Action issued to ask REALTORS® to contact their representatives to re-authorize the National Flood Insurance Program for the next five years. Please take a moment to respond and let your member of Congress know how important it is to act now. The NFIP loses its current authorization at the end of September.

Please take a few moments to act on this issue now by going to http://bit.ly/2iql7ht. That will take you to the action page for the National Flood Insurance Program.

For millions of Americans, the NFIP is the only option for flood insurance coverage. That means that when disaster happens, the federally backed flood program is also the main way they rebuild their lives and their homes. Please help us convince lawmakers to keep this essential backstop in place.

Unfortunately, Hurricane Harvey is only the current flooding disaster to affect a community or region. There have been many in past years. There will be many more in future years that affect other parts of our country. Please help us ensure that millions of Americans are able to rebuild after a flood by reauthorizing the NFIP.

Please help the REALTORS® Relief Foundation – or one of the dozens of amazing relief groups supporting Texas families escaping the flooding today – by donating online today. Help millions more future flood victims by passing legislation to keep the National Flood Insurance Program going past September 30th.

Finally, please keep the victims of this disaster in your prayers.

https://www.nar.realtor/programs/

http://bit.ly/2iql7ht

Government Affairs Updates


GOVERNMENT AFFAIRS UPDATE

PAUL HERRERA,GOVERNMENT AFFAIRS DIRECTOR

Federal: REALTOR® Call for Action on National Flood Insurance Program

This week, the National Association of REALTORS® launched a Call for Action asking members of Congress to reauthorize the National Flood Insurance Program. The NFIP is a crucial program that makes homeownership possible for millions of Americans across the country.

Without the NFIP, those homeowners would face entirely unaffordable flood insurance premiums or no access to flood insurance at all. In either case, they would also not be able to get a mortgage to purchase their homes. In the case of flooding disasters, such as the almost unprecedented storm in Texas right now, flood insurance may be the only lifeline that allows devastated communities to rebuild.

Please help us by asking lawmakers to reauthorize the NFIP. The Call for Action is

available at http://bit.ly/2iql7ht. It only takes a few moments to send your message to your representative in Congress.

State: REALTORS® Support Options to Build More Housing, Address Affordability Crisis

Over the next few weeks, California lawmakers will tackle several pieces of legislation designed to make it easier to build homes, particularly for working class families and lower income households in California. Almost all parties agree that the current affordability problem in California is driving out middle class families, hurting the state’s economy and creating an untenable situation for all Californians going forward. It’s not clear that even the current legislation will make the impact necessary to fix the issue, but there’s little doubt that it represents real progress.

The legislative options vary in detail, but point in the same direction. When local communities consistently fall short in meeting goals for new housing, particularly housing affordable to working families, that were set locally, there would be greater tools to push for fast track permitting and decision-making. This would lower barriers to construction and ultimately help address the supply problem.

IVAR will be tracking the legislation closely to support market-based solutions to the growing affordability crisis.

http://bit.ly/2iql7ht

INLAND VALLEYS REALTOR® MARCH 2017 7

The most important thing each member can do to support our government affairs work is to stay informed and help spread the word on important issues to your colleagues, clients, friends and neighbors. Nothing is more important than your time, including the time you devote to making your voice heard at the ballot box each election day.

Our work is supported through voluntary contributions made by members to the REALTOR® Action Fund. These annual contributions of $49 or more help ensure that we have the resources to research important issues, communicate with our members and mobilize our industry to have the impact necessary to make a difference.

You can make a contribution as you renew your membership – or anytime by going to www.car.org/governmentaffairs/raf.

Questions? Comments? You can reach Paul Herrera, Government Affairs Director, at [email protected] or on his cell phone at 951-500-1222.

Support our Mission, Support the REALTOR® Party

TECHNOLOGYANALYTICSINNOVATION

Download the app. Exclusively for REALTORS® • Active: 10/1/2014

http://www.car.org/governmentaffairs/raf

mailto:[email protected]


MEDIA CONTACT: COLE HENRY / 202-383-1290

WASHINGTON (August 22, 2017) – Keeping up with technology, maintaining sufficient inventory, competition from nontraditional participants and profitability are among the biggest challenges for real estate firms, according to the National Association of Realtors® 2017 Profile of Real Estate Firms.

Conversely, for a third year in a row, the survey found the vast majority of firms have an optimistic outlook for the future of the industry’s growth. Although expectations have slightly decreased from last year’s survey, firms remain confident and expect profitability from all real estate activities to increase or stay the same over the next year.

“Real estate firms continue to have a very positive outlook on the state of the industry. As the survey found, 90 percent of real estate firms expect net income to increase or remain the same over the next year,” says NAR president William E. Brown, a second-generation Realtor® from Alamo, California and founder of Investment Properties. “But for the second year in a row, low inventory and high prices have led to a slight decrease in real estate firms’ sales volume.”

The report is based on a survey of firm executives who are members of the National Association of Realtors® and provides insight into the business characteristics and activity of firms, benefits and education provided to agents and outlook for the future.

Real estate firms are sensing strengthened competition this year, as 50 percent of firms expect competition to increase in the next year from non-traditional market participants, up from 43 percent in 2016. Half of firms expect competition during the same period to increase from virtual firms (up from 47 percent in 2016), while only 15 percent expect competition will increase from traditional brick-and-mortar firms.

“There is no doubt that the real estate industry is rapidly changing, and with it comes growing competition,” said NAR CEO Bob Goldberg. “To stay ahead of this evolution and succeed in a more competitive market, NAR is establishing a new Strategic Business and Technology group to focus on business and technology solutions that ensure the role of the Realtor® is essential to the consumer.”

According to the survey, 60 percent of commercial firms expect profitability from all real estate activities to increase in the next year, compared to 64 percent in 2016. Residential real estate firms are more optimistic compared to commercial

firms; 62 percent of firms expect profitability to improve, compared to 65 percent in 2016.

The typical residential real estate firm’s brokerage sales volume was $6.2 million in 2016 (down from $6.3 in 2015), while the typical commercial real estate firm’s brokerage sales volume was $4.0 million in 2016 (down from $4.5 in 2015).

The survey found that the size of the firm has an impact on sales volume. Firms with only one office, typically with 2 full-time licensed agents, had a median brokerage sales volume of $4.3 million in 2016, compared to $4.5 million in 2015. Large firms, those with four or more offices and typically with 81 full-time licensed agents, had a median brokerage sales volume of $235.0 million in 2016, compared to $203.8 million in 2015.

The survey states that 43 percent of firms reported they are actively recruiting sales agents in 2017, down from 47 percent in 2016. This is more common among residential firms (49 percent) than commercial firms (29 percent) and more common among firms with four offices or more (84 percent) than firms with one office (36 percent).

Real estate firms typically had 30 percent of their customer inquiries from past client referrals, another 30 percent from repeat business from past clients, 20 percent from their website or social media, and 1 percent through open houses.

Firms also predicted the effect different generations of homebuyers would have on the industry. Fifty-two percent of firms are concerned with Gen Y/millennials’ ability to buy a home, 34 percent of firms are concerned with millennials’ view of homeownership, and 32 percent of firms are concerned about the recruitment of millennial and Gen X real estate professionals.

The survey also asked about professional volunteer work and supporting the local community. Eight out of 10 firms encourage their agents to volunteer in the local community (similar to 2016): 43 percent at the local association of Realtors®, 25 percent at the state association of Realtors® and 18 percent with NAR. According to the study, residential firms (82 percent) are more likely to encourage agents to volunteer compared to commercial firms (79 percent).

The NAR 2017 Profile of Real Estate Firms was based on an online survey sent in July 2017 to a national sample of 165,598 executives at real estate firms. This generated 6,073 useable responses with a response rate of 3.7 percent.

Technology, Inventory and Competition Among Firms’ Top Challenges: Realtors® Survey

INLAND VALLEYS REALTOR® AUGUST 2017 9

Stay ConnectedAs part of our efforts to keep you

informed in a prompt and convenient manner IVAR offers a text-messaging service for weekly alerts, news and information.

To RegisterSend the text “subscribe all” to 951-

999-4354

The following English-language commands will also work: STOP, STOPALL, UNSUBSCRIBE, CANCEL, END, and QUIT will stop you from receiving messages.

Receive Weekly IVAR News and Updates via Text Messages

subscribe all Information Broadcast to all subscribers

subscribe advocacy REALTOR Party “Call to Action” – NAR/CAR red alerts

subscribe alerts Emergency information, closures, and holiday schedules

subscribe breakfast Breakfast Meetings

subscribe dues Reminders about dues payments and deadlines

subscribe education Updates on education and training opportunities

subscribe events Announcements about special events

BY SIGNING UP, YOU CONSENT TO RECEIVE TEXT MESSAGES BY AUTOMATED MEANS. THIS SERVICE IS FREE FROM IVAR, BUT CARRIER MESSAGE AND DATA RATES MAY APPLY. IVAR HAS SEVERAL CATEGORIES/TOPICS THAT MIGHT INTEREST YOU:


JULY 2017 REGION REPORT INLAND VALLEYS

www.ivaor.com

© 2017 INLAND VALLEYS ASSOCIATION OF REALTORS

The Voice of Real Estate in the Inland Empire℠

Housing Data Report July 2017

A report brought to you by the Inland Valleys Association of REALTORS® (IVAR)www.ivaor.com

RIVERSIDE OFFICE RANCHO CUCAMONGA OFFICE3690 Elizabeth Street 10574 Acacia Street, Suite #D-7Riverside, California 92506 Rancho Cucamonga, California 91730Office: 951-684-1221 Office: 909-527-2133





www.ivaor.com

Riverside Office:

3690 Elizabeth Street

Riverside, CA 92506

Rancho Cucamonga Office:

10574 Acacia St, Suite #D-7Rancho Cucamonga, CA 91730

www.ivaor.com

Annual Change

Sold $/List $ 99.02% 100.00% 1.0%

IVAR Member Services: 951.684.1221 | Rancho Cucamonga: 909.527.2133 | Office FAX: 951.684.0450

-68.0%

Days on Market 42 15 -64.3%

CDOM 50 16

All data used to generate these reports comes from the California Regional Multiple Listing Service, Inc. If you have any questions about the data, please call the CRMLS Customer Service Department between the hours of 8:30am to 9:00pm Monday thru Friday or 10:00am to 3:00pm Saturday and Sunday at 800-925-1525 or 909-859-2040.

Sales Volume

($M) $1,444 $1,516 5.0%

Price/Sq.Ft. $191 $206 7.7%

New Listings

3,836 3,800 -0.9%

Median Sales

Price $347,000 $375,000 8.1%

Sold Listings

5,366 5,045 -6.0%

Pending Sales 3,750 4,333 15.5%

Jul 2017 - Monthly ReportInland Valleys Regional Summary

Jul-2016 Jul-2017

0

1000

2000

3000

4000

5000

6000

Monthly New Listings

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Monthly Closed Listings

347350 349 347

350355

345350

356360

365

375 375

330

335

340

345

350

355

360

365

370

375

380

Th

ou

sa

nd

s

Monthly Median Sales Price





www.ivaor.com

Riverside Office:


Riverside, CA 92506



www.ivaor.com

New Listings 35,916 34,354 -4.3%

Pending Sales 26,338 28,489

Jan through Jul 2017 - YTD ComparisonsInland Valleys Regional Summary

Jan-Jul 2016 Jan-Jul 2017

The statistics shown below are for all 7 months of the years represented.

Month to month comparisons give you a quick way to see what is recently changing in the region. However, by comparing Year-To-Date (YTD) information across several years, you can observe more signifiant trends.

0.6%

Year-Over-Year

Change

Sales Volume

($M)$8,909 $10,103 13.4%

7.0%

8.2%

Median Sales

Price$337,500 $363,990 7.8%

Sold Listings 24,394 25,886 6.1%

IVAR Member Services: 951.684.1221 | Rancho Cucamonga: 909.527.2133 | Office FAX: 951.684.0450

Days on Market 46 22 -52.2%

CDOM 54 25 -53.7%

Price/Sq.Ft. $187 $200

Sold $/List $

All data used to generate these reports comes from the California Regional Multiple Listing Service, Inc. If you have any questions about the data, please call the CRMLS Customer Service Department between the hours of 8:30am to 9:00pm Monday thru Friday or 10:00am to 3:00pm Saturday and Sunday at 800-925-

1525 or 909-859-2040.

98.73% 99.33%

0

10000

20000

30000

40000

50000

60000

70000

80000

YTD New Listings

0

5000

10000

15000

20000

25000

30000

35000

YTD Closed Listings

405

280

177 192 190 195246

290 315 338364

0

50

100

150

200

250

300

350

400

450

Th

ou

sa

nd

s

YTD Median Sales Price

58%

We are 7 months through the year:





www.ivaor.com

Riverside Office:3690 Elizabeth StreetRiverside, CA 92506



www.ivaor.com

YOY Sales

Transactions

YOY Median

Sales Price %

Median Sales

Price $Inventory Price per Sq.Ft. Total Days on Market

Alta Loma -15% -3% 536,000$ 20 291$ 13

Banning -25% 18% 255,000$ 82 177$ 9

Beaumont 8% 10% 308,000$ 115 153$ 27

Bloomington 217% -3% 300,000$ 18 214$ 13

Canyon Lake 8% 4% 380,000$ 49 203$ 42

Chino 1% 12% 460,000$ 115 258$ 17

Chino Hills 28% 2% 598,000$ 106 327$ 17

Claremont -9% 3% 620,000$ 30 340$ 11

Colton -3% 19% 285,000$ 64 194$ 22

Corona 13% 5% 455,000$ 302 236$ 17

Diamond Bar -26% 4% 589,000$ 102 351$ 12

Eastvale -30% 12% 551,000$ 56 191$ 14

Fontana -18% 14% 386,000$ 221 222$ 13

Grand Terrace 0% 5% 340,000$ 16 206$ 12

Hemet -13% 5% 230,000$ 211 140$ 13

Highland 52% 15% 355,000$ 70 186$ 20

Jurupa Valley -7% 11% 433,000$ 55 235$ 23

La Verne -30% 1% 610,000$ 42 335$ 17

Lake Elsinore -6% 9% 355,000$ 171 172$ 12

Loma Linda -15% -12% 360,000$ 11 214$ 9

Menifee 1% 5% 347,000$ 197 171$ 21

Montclair 14% 0% 385,000$ 26 253$ 14

Moreno Valley 2% 7% 305,000$ 259 180$ 11

Murrieta 11% 8% 410,000$ 254 183$ 15

Norco 33% 13% 531,000$ 45 268$ 23

Ontario -4% 6% 375,000$ 138 269$ 16

Perris -19% 13% 300,000$ 125 161$ 12

Pomona -2% 11% 386,990$ 94 291$ 16

Rancho Cucamonga -4% 8% 499,990$ 235 276$ 14

Redlands 24% 22% 421,000$ 76 237$ 17

Rialto -4% 2% 315,000$ 100 214$ 11

Riverside -2% 9% 383,000$ 575 225$ 16

San Bernardino 15% 8% 250,000$ 283 188$ 22

San Dimas -3% 15% 580,000$ 35 327$ 16

San Jacinto -4% 4% 253,900$ 87 141$ 10

Sun City -14% -1% 211,000$ 33 158$ 42

Temecula 0% 4% 435,000$ 240 215$ 19

Upland 13% 1% 540,000$ 119 280$ 20

Wildomar -25% 7% 375,000$ 65 169$ 16

Winchester 30% 5% 410,000$ 75 163$ 17

Yucaipa -30% 6% 356,000$ 67 195$ 16

As a service and convenience to our members, IVAR is pleased to offer several "Quick Look" reports. This is one more way for IVAR members

to stay informed with minimal effort.

The following monthly data shows "YEAR-OVER-YEAR" (YOY)changes as well as current conditions in the real estate market

Riverside: 951.684.1221 | Rancho Cucamonga: 909.527.2133 | FAX: 951.684.0450

Jul 2017 City Overview





www.ivaor.com

Riverside Office:


Riverside, CA 92506


10574 Acacia St, Suite #D-7

Rancho Cucamonga, CA 91730

www.ivaor.com

Jul 2017 - Sales Volume per CityAs a service and convenience to our members, IVAR is pleased to offer several "Quick Look" reports. This is one more way for IVAR

members to stay informed with minimal effort.


11

15

24

19

11

24

40

39

27

38

23

28

28

70

29

43

50

67

70

64

57

91

51

79

73

54

101

81

70

114

185

207

172

190

157

91

158

258

232

255

361

$3,922,050

$4,993,680

$5,284,400

$5,845,500

$6,066,000

$9,349,440

$9,997,800

$11,040,800

$11,973,700

$14,517,800

$15,091,500

$16,500,500

$16,768,900

$16,857,700

$17,599,500

$18,869,000

$18,871,200

$20,208,000

$22,190,900

$22,650,700

$23,273,700

$27,890,100

$28,044,000

$30,497,300

$31,657,300

$32,554,800

$37,324,600

$38,175,100

$38,991,900

$40,108,300

$41,511,400

$53,738,200

$57,485,200

$58,334,200

$60,531,300

$61,325,300

$83,295,500

$106,905,000

$114,448,000

$121,324,000

$147,323,000

Loma Linda

Grand Terrace

Sun City

Bloomington

Alta Loma

Montclair

Banning

Colton

Canyon Lake

Wildomar

La Verne

Norco

San Dimas

San Jacinto

Claremont

Jurupa Valley

Yucaipa

Perris

Rialto

Highland

Winchester

Beaumont

Eastvale

Pomona

Redlands

Diamond Bar

Ontario

Chino

Upland

Lake Elsinore

Hemet

San Bernardino

Menifee

Moreno Valley

Fontana

Chino Hills

Rancho Cucamonga

Murrieta

Temecula

Corona

Riverside

Legend:

The BLUE bars show last month's sales volume (both count and dollars) for each city.

Top 10 communities had combined Sales Volume

of $865M





www.ivaor.com




www.ivaor.com

Jul 2017 - Top Communities with New Listings (year-over-year)As a service and convenience to our members, IVAR is pleased to offer several "Quick Look" reports. This is one more way for IVAR

members to stay informed with minimal effort.


63

75

137

251

34

54

174

27

110

283

13

81

52

95

452

229

70

241

242

302

118

97

293

120

263

86

164

48

27

50

110

116

113

59

39

107

34

25

26

56

34

-100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100%

Eastvale

Rialto

Lake Elsinore

Temecula

La Verne

Winchester

Menifee

Sun City

Chino Hills

Corona

Grand Terrace

San Jacinto

Banning

Redlands

Riverside

Fontana

Wildomar

Moreno Valley

Rancho Cucamonga

Murrieta

Perris

Diamond Bar

San Bernardino

Chino

Hemet

Highland

Ontario

Jurupa Valley

Norco

San Dimas

Upland

Pomona

Beaumont

Colton

Canyon Lake

Yucaipa

Montclair

Alta Loma

Loma Linda

Claremont

Bloomington

Legend:

The column of numbers on the left is the # of new listings in each city for last month.

The bars show the annual percent change since the same month, 1 year ago.





www.ivaor.com




www.ivaor.com

Sell Price vs Original List PriceAs a service and convenience to our members, IVAR is pleased to offer several "Quick Look" reports. This is one

more way for IVAR members to stay informed with minimal effort.


97.000%

97.500%

98.000%

98.500%

99.000%

99.500%

100.000%

100.500%

Legend:Any number ABOVE 100% means there is upward pressure to raise the sell price.

Any number BELOW 100% means there is downward pressure to lower the sell price.

15%

44%

26%

15%

Finance Type

Cash

Conventional

FHA

Other

This report is brought to you by

IVAR:

As a service to the more than 4 million residents of the

Inland Empire, the Inland Valleys Association of

Realtors® is proud to distribute this data report on the

housing market in the 50 communities served by our

Realtor Members.

The core purpose of IVAR is to help its members

become more professional and profitable, while

promoting and protecting real property rights.




MEDIA CONTACT: COLE HENRY / 202-383-1290

WASHINGTON (August 2, 2017) – Commercial real estate markets continue to improve, with Realtors® specializing in commercial real estate reporting both an increase in member’s gross income and sales volume, according to the National Association of Realtors® 2017 Commercial Member Profile.

The annual study’s results represent Realtors®, members of NAR, who conduct all or part of their business in commercial sales, leasing, brokerage and development for land, office and industrial space, multifamily and retail buildings, as well as property management.

“There has been an uptick in Realtor® members who choose to specialize in commercial real estate at the same time as commercial professionals report improvements in the market and their business activity,” said 2017 NAR President William E. Brown, a Realtor® from Alamo, California. “A stronger commercial market is a good indicator of a growing economy, so the outlook is positive for commercial members in the year ahead.”

The median gross annual income for commercial members in 2016 was $120,800, an increase from $108,800 in 2015. Brokers and appraisers tend to report the highest median annual incomes, while sales agents report the lowest among licensees. Those with less than two years of experience reported a median annual income of $31,500 in 2016, down from $43,400 in 2015; members with more than 26 years of experience reported a median annual income of $162,200 in 2016, down from $165,400 in 2015.

Commercial members completed a median of eight sales transactions in 2016, a decrease of one since 2015. A quarter of commercial members reported having one to four transactions, and 27 percent reported having more than 20 transactions.

While the number of transactions decreased slightly in 2016, the sales volume increased again this year. The median sales transaction volume in 2016 among members who had a transaction was $3,500,000, an increase from $2,931,000 in 2015. Only 7 percent of commercial members reported not having a transaction at all, which decreased from 8 percent in 2015.

The median years of experience in real estate increased to 24 years in 2017, up from 20 years in 2016, as did the median

years of experience of members in commercial real estate – up from 15 years in 2016 to 19 years in 2017.

Forty-seven percent of NAR’s commercial members are brokers, and 30 percent are licensed sales agents, consistent with last year. Seventeen percent of commercial members have a broker-associate license while appraisal license holders account for 5 percent, also consistent with last year.

The median age of commercial members remained the same as last year, at 60 years old. Almost three out of four commercial members are male, identical to last year’s results. Men reported being active in any real estate capacity for a median of 25 years and in commercial real estate for a median of 20 years, the same as last year. Women have been active in real estate for a median of 19 years (up from 14 years last year) and in commercial real estate for a median of 15 years (up from 11 years last year).

Commercial members who manage properties typically managed 82,000 total square feet, representing 15 total spaces, up from 50,000 square feet and 17 spaces in 2015. Those who manage offices typically managed 25,000 total office square feet, representing seven total offices, up from 20,000 office square feet and five offices last year.

Thirty-three percent of commercial members were involved in international transactions in 2016, down 2 percent from 2015. Eighteen percent of commercial members reported an increase in international transactions, while only 1 percent had a decrease.

Sixty-five percent (up from 60 percent in 2016) of respondents are members of any of several commercial affiliated institutes, councils, or societies. These commercial organizations include the CCIM Institute, the Institute of Real Estate Management, the Counselors of Real Estate, the Realtors® Land Institute and the Society of Industrial and Office Realtors®.

In June 2017, NAR invited a random sample of 64,147 Realtors® with an interest in commercial real estate to fill out an on-line survey. A total of 1,926 responses were received for an overall response rate of 3.0 percent. All information in this report is representative of member characteristics in 2017 while sales and lease transaction values and income are characteristic of calendar year 2016.

Realtors® Report Finds 11 Percent Increase in Commercial Member Income, 19 Percent Increase in Sales Transaction Volume

Foley Publications, Inc. is proud to partner with the Inland Valleys Association of REALTORS®. Together we will provide a professional, interactive monthly e-magazine for the Association’s membership.

30+ Years of Real Estate Publishing Excellence!

For advertising information, please contactNed Foley at 303-758-7878 or

visit our website at www.foleypub.com.

http://www.foleypub.com

august 2017 the official publication … · me and success for my clients and business partners.”...

Documents